National Disaster COVID-19 Causing Strain on Health Insurance Finances

Concerns Over Health Insurance Financial Deterioration During COVID-19 Prevention and Treatment
Yejeongcheo: "Government Should Budget to Minimize Premium Increases by Estimating Medium- to Long-Term Expenditure Scale"

[Asia Economy Reporter Naju-seok] Although the law stipulates that the funds used to overcome COVID-19 should be borne by the central and local governments, it has been revealed that a significant portion actually relies on health insurance finances.

On the first day of COVID-19 vaccination for ages 18 to 49, on the 26th, a citizen is receiving a vaccine at the vaccination center set up at Sadang Sports Complex in Dongjak-gu, Seoul. Photo by Mun Ho-nam munonam@

According to the National Assembly Budget Office's report titled "Analysis of Health Insurance Financial Requirements Related to COVID-19" as of June this year, out of the total hospitalization cost of 509.4 billion KRW for COVID-19 patients, the government only covered 69.2 billion KRW, while the remaining 437.2 billion KRW was paid from health insurance finances.

During the same period, 4,598,000 diagnostic tests were conducted, resulting in 297.7 billion KRW in health insurance medical expenses. Regarding COVID-19 vaccines, the government covers the cost of vaccine purchase and vaccination center fees, but 70% of the vaccination fees at entrusted medical institutions are borne by health insurance finances. The report estimated that if 15 million people are vaccinated at private medical entrusted institutions, a total of 336.4 billion KRW in health insurance finances would be spent. According to the "Infectious Disease Prevention and Control Act" and the "Framework Act on Disaster and Safety Management," costs incurred during the process of overcoming national disasters should be supported by the budgets of central and local governments.

During the COVID-19 disaster situation, the government also implemented policies to reduce health insurance premiums for vulnerable groups, causing double pressure on health insurance finances. The reduction rate of health insurance premiums for vulnerable groups such as low-income households and small business owners is up to 50%. The resulting decrease in health insurance revenue amounts to 645.9 billion KRW.

The Budget Office pointed out, "There are concerns about financial deterioration as prevention and treatment costs are paid from health insurance finances during the COVID-19 response," adding, "It is necessary to estimate the mid- to long-term expenditure scale of premium reductions and support for testing and treatment costs arising from government policies, and to prepare the budget so that the related costs minimize the increase in subscribers' premiums."

This content was produced with the assistance of AI translation services.